The effect of late payment penalties on the payment timing of owed taxes

C-Tier
Journal: Economics Letters
Year: 2023
Volume: 229
Issue: C

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper studies the effectiveness of a policy designed to influence the timing decision for payments of owed taxes. Owed taxes arise when the sum of the foregoing tax year’s preliminary tax payments falls short of the total tax liability. In 2009 the Danish tax authority (SKAT) introduced an annualised penalty rate of 4.6%. Using administrative tax data, I show that the penalty rate introduction led to a 50-day advancement of payments.

Technical Details

RePEc Handle
repec:eee:ecolet:v:229:y:2023:i:c:s0165176523002252
Journal Field
General
Author Count
1
Added to Database
2026-01-29